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ARTICLE · 27 JUNE 2014

U.S. Supreme Court Again Limits Business Method Patents

The United States Supreme Court unanimously reaffirmed that the mere implementation of an abstract idea in a computer is not sufficient.

CanadaIntellectual Property

The United States Supreme Court today unanimously reaffirmed that the mere implementation of an abstract idea in a computer is not sufficient to render it eligible for a patent.

The Court's decision in Alice Corp. v. CLS Bank concerned patents directed to a scheme for mitigating settlement risk in financial transactions. In contrast with the patent at issue in the 2010 Bilski v. Kappos case, the Alice patents included method, system and computer-readable medium claims, each of which recited elements of a computer.

In reaching its decision, the Court drew in part on its 2012 decision in Mayo Collaborative Services v. Prometheus Laboratories, Inc., which had set out a framework for determining whether claims are directed to patent-eligible subject matter. Under that framework, a court must first determine whether the patent claims are directed to a patent-ineligible concept, such as an abstract idea or a law of nature. If so, then the claim's elements must be

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